International Journal of Economics, Finance and Management Sciences
Volume 2, Issue 2, April 2014, Pages: 132-137
Received: Feb. 18, 2014;
Published: Mar. 20, 2014
Views 4258 Downloads 358
Charles Guandaru Kamau, Jomokenyatta University of Agriculture and Technology (JKUAT), Juja, Kenya
Samuel Kariuki Nduati, Jomokenyatta University of Agriculture and Technology (JKUAT), Juja, Kenya
Agnes Ndinda Mutiso, Jomokenyatta University of Agriculture and Technology (JKUAT), Juja, Kenya
The institute of internal auditors expressed the role of internal audit as that providing objective assurance and consulting services designed to add value and improve an organization’s operations. In performing this role the internal auditors are required by the international standards to exercise professional independence and objectivity. Audit independence means freedom from conditions that threaten mental attitude which is unbiased. The literature suggests several factors which affect the audit independence in Kenya, which are explored in this study. The study collected its data using a self-made questionnaire which was distributed among auditors in Kenya so as to establish the status of internal auditor’s independence in Kenya. The data collected was subjected to multiple regression analysis so as to test hypotheses and make conclusions on internal audit independence and its motivators in Kenya. The study established that that auditor’s involvements in management and audit committee effectiveness, among other factors have significant influence on the internal auditor’s independence in Kenya.
Charles Guandaru Kamau,
Samuel Kariuki Nduati,
Agnes Ndinda Mutiso,
Exploring Internal Auditor Independence Motivators: Kenyan Perspective, International Journal of Economics, Finance and Management Sciences.
Vol. 2, No. 2,
2014, pp. 132-137.
The Institute of Internal Auditors, The Professional Practices Framework. Florida, USA: Altamonte Springs, 2004.
Vanasco, Rocco R., Clifford R. Skousen, and L. Roger Santagato. "Auditor independence: an international perspective." Managerial Auditing Journal 12.9 (1997): 498-505.
Stewart, Jenny, and Nava Subramaniam. "Internal audit independence and objectivity: emerging research opportunities." Managerial auditing journal 25.4 (2010): 328-360.
Ongeri, S. N., C. Okioga, and D. K. Okwena. "An Assessment of the Effectiveness of Internal Audit Systems in the Management of Decentralized Funds in Kenya: A Study of Local Authority Transfer Fund In Kisii Municipal Council." Scientific Conference Proceedings. 2013.
Rono, E. (2006). Effectiveness of the internal control system in management of finances in public universities in Kenya. A masters project submitted to Egerton University.
Oyugi, L. N. (2005). Fiscal Decentralization in Kenya: the case study of Local Authority Transfer Fund. A discussion paper downloaded from http://www.kenyagranery.or.ke/?p=/129 on 23/03/2010
Mihret, Dessalegn Getie, and Aderajew Wondim Yismaw. "Internal audit effectiveness: an Ethiopian public sector case study." Managerial Auditing Journal 22.5 (2007): 470-484.
Adams, Michael B. "Agency theory and the internal audit." Managerial Auditing Journal 9.8 (1994): 8-12.
Drent, D. (2002), "The duest for increased relevance: internal auditors who successfully communicate and balance their needs and those of their clients can increase their relevance to the organisation", Internal Auditor, Vol. 59 No. 1, pp. 49-54.
Van Gansberghe, C.N. (2005), Internal Audit: Finding Its Place in Public Finance Management, The International Bank for Reconstruction and Development, The World Bank, Washington, DC
Christopher, J., Sarens, G., & Leung, P. (2009). A critical analysis of the independence of the internal audit function: evidence from Australia. Accounting, Auditing & Accountability Journal, 22(2), 200-220.
Verschoor, C. C. (2008). Audit committee essentials. Wiley. com.
Zhang, Yan, Jian Zhou, and Nan Zhou. "Audit committee quality, auditor independence, and internal control weaknesses." Journal of accounting and public policy 26.3 (2007): 300-327.
Goodwin, J. and Yeo, T.Y., "Two factors affecting internal audit independence and objectivity: evidence from Singapore", International Journal of Auditing, 5. 2 (2001): 107-25.
Turley, S. and Zaman, M., "The corporate governance effects of audit committees", Journal of Management and Governance, 8. 3 (2004): 305-32.
Goodwin, J. (2003), "The relationship between the audit committee and the internal audit function – evidence from Australia and New Zealand", International Journal of Auditing, Vol. 7 No. 3, pp. 263-78.
Raghunandan, K.R., Read, W.J. and Rama, D.V. (2001), "Audit committee composition, gray directors, and interactions with internal auditing", Accounting Horizons, Vol. 15 No. 2, pp. 105-18.
Schneider, A. (2010). ASSESSMENT OF INTERNAL AUDITING BY AUDIT COMMITTEES. Academy of Accounting & Financial Studies Journal, 14(2).
Kamau, C. G., & Kariuki, S. N. (2012). Factors Influencing Sample Size for Internal Audit Evidence Collection in the Public Sector in Kenya. International Journal of Advances in Management and Economics, 1(2), 42-49.
Selim, G. and Yiannakas, A. (2000), "Outsourcing the internal audit function: a survey of the UK public and private sectors", International Journal of Auditing, Vol. 4, pp. 213-226.
Bichanga, W. O., & Kamau, C. G. (2012). A study to explore internal auditors’ compliance with Quality Assurance Standards: A case of state owned corporations in Kenya. International Journal of Research Studies in Management, 1(1).
Hass, Susan, Mohammad J. Abdolmohammadi, and Priscilla Burnaby. "The Americas literature review on internal auditing." Managerial Auditing Journal 21.8 (2006): 835-844.
Howard, John, and David D. Weiss. "True independence." Internal Auditor Oct. 2005: 13.
Salehi, M., Mansouri, A., and Azary, Z. (2009) "Independence and Audit Expectation Gap: Empirical Evidence from Iran", International Journal of Economic and Finance. 1, 165-174.
Kline, P. (2000). The handbook of psychological testing (2nd ed.). London: Routledge